Bank of Baroda Remained Silent on Rotomac Case For Two Years, Approached CBI After Nirav Modi-PNB Fraud Unearthed News Desk
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Vikram Kothari Seeks Permission For Home-cooked Food, Says Suffering From 21 Ailments

Lucknow, February 26: In an application before a Central Bureau of Investigation court, Rotomac owner Vikram Kothari sought permission to get home-cooked food and routine medical check during the interrogation. He said that he is 70-year-old and is suffering from 21 ailments. Kothari was sent to 11-day CBI custody in Delhi on Saturday following a […]

New Delhi, Feb 21: Rs 435 crore loan, which was given to Vikram Kothari-run Rotomac by the Bank of Baroda, was classified as “non-performing asset” in October 2015. The loan was later classified as a fraud in December 2017. The bank, however, didn’t report the matter to the Central Bureau of Investigation (CBI) for two years and only came out after the Nirav Modi’s PNB fraud came to light, fearing Vikram Kothari too would flee the country, just like the diamond czar.

The bank remained silent despite facing a scam of Rs 6,172 crore in 2015. In this scam, called Bank of Baroda forex scam, Rs 6,172 was sent to Hong Kong for the import of cashewnuts, pulses and rice. However, nothing was imported and the money was deposited in 59 bank accounts, Times of India reported. When the fraud came to light, the CBI arrested bank’s assistant general manager SK Garg and the head of forex division Jainesh Dubey.

“Since, this account (Rotomac) is of high value in this fraud case, we apprehend that directors/guarantors of the company may escape from the country to skip the legal/criminal proceedings,” Bank of Baroda said in a complaint. (Also Read: Prevent Possible Exit of Vikram Kothari, Family From Leaving India: ED)

“Public money of the bank is at stake and after escape of the directors of the companies from India, (it) will be cause of emanating various other legal intricacies like extradition as well.” The bank has also requested the investigation agency to “seize the passports of Vikram Kothari, his wife Sadhana Kothari and son Rahul”.

The investigation agency have said that the bank should have approached them in 2015 or in 2017 itself when the fraud had come to the surface.

Vikram Kothari, owner of Rotomac, is being investigated for defaulting on over Rs. 3,700 crore in loans from government banks. Hours after the CBI filed a First Information Report, his home and establishments in Uttar Pradesh’s Kanpur were raided by the investigators. Kothari’s wife and son have also been questioned during the searches.

Kothari, however, denied any wrongdoing and said, “Yes, I took a loan from the bank but it’s wrong information that I haven’t paid.”